There is no universally agreed definition of sustainability. Across industries, or even within our own coatings industry, each company has its own definition based on loosely similar tenets. The principles of sustainability are the foundations of what this concept represents. Therefore, sustainability is made up of three pillars: economy, society, and the environment. These principles are also informally used as profit, people and planet.
Sustainable is an adjective for something that is able to be sustained, i.e, something that is “bearable” and “capable of being continued at a certain level”. In the end, sustainability can perhaps be seen as the process (es) by which something is kept at a certain level.
Nonetheless, nowadays, because of the environmental and social problems society is facing, sustainability is commonly used in a specific way. Therefore, sustainability can be defined as the processes and actions through which humankind avoids the depletion of natural resources (which is influenced by the way societies are organized) to keep an ecological balance so that society’s quality of life doesn’t decrease. Sustainability is quickly becoming a leading business trend driving decisions and strategies by industrial manufacturers. As one example, the Governance & Accountability Institute found in its most recent survey that 86 percent of S&P 500 Index companies now publish Sustainability Reports. These initiatives are being driven to manage future raw materials and to position companies to be attractive to investors (ESG), customers and other stakeholders. Many companies make reporting disclosures explaining their contributions to tackling societal issues, such as food and water security issues and climate change.
Figures 1, 2 and 3 represent sustainability as defined by various companies ranging from simple to complex.
Sustainability encourages people, politics, and businesses to make decisions based on the long term. In this way, acting sustainably encompasses a temporal framework of decades (instead of a few months or years) and considers more than the profit or loss involved.
DSM Coating Resins believes that business plays a crucial role in creating a sustainable society. Three elements define sustainable at DSM (similar to the above): health, climate change, and circularity. These relate to the following sustainability drivers for DSM Coating Resins: “elimination of toxic ingredients, reduction of VOCs to improve and protect indoor and outdoor air quality, reduction of carbon footprint, and an increased use of biobased ingredients.”[i]
DSM has played a leading role in transforming the industry from solvent- to water-based coatings. However, the definition of sustainability is certainly broader and more thoroughly defined than it has been in the past. In a way, sustainability is a core driver, the more areas you identify as providing opportunities for improvement.
Sustainable product innovation is more than a business strategy at PPG. PPG is committed to delivering value for shareholders and customers by operating with integrity, working safely, respecting the contributions of our people, preserving the environment, and supporting the communities where we operate.
Companies are looking at product stewardship within their sustainable portfolio. Many analyze their total portfolio with regard to its content of hazardous ingredients and to identify products that might become critical in the future. VOC reduction has been an evolving process reduces VOC from paints by reformulating various product lines and discontinuing high-VOC product lines.
Sustainability and a circular economy go beyond looking at waste. It is about sourcing renewable and recycled materials; and designing products that are more durable, and easier to repair, re-use and re-purpose – thus preventing waste in the first place.
The ability to maintain an ecological balance and keep things going at a level that causes the least harm to the environment and human civilization alike is sustainability.[ii] Sustainability is a broad discipline, giving insights into most aspects of the human world from business to technology to environment and the social sciences. Sustainability draws on politics, economics, philosophy and other social sciences as well as the hard sciences. Sustainability is a priority in many corporate jobs, with the title and role typically held in upper management such as Chief Sustainability Officer or Director of Sustainability.
Sustainability is also one the newest educational degrees offered by several Universities that focusing on bridging social science, civic engineering, environmental science and the technology of the future. When we hear the word “sustainability” we tend to think of renewable fuel sources, reducing carbon emissions, protecting environments and a way of keeping the delicate ecosystems of our planet in balance.
Cargill is a good example of a company that has launched a sustainability strategy to guide the business. Cargill states, “In the U.S., where soybean production utilizes environmental best practices, most growers participate in certified and audited sustainability and conservation programs. We supported development of the U.S. Soybean Sustainability Assurance Protocol (USSSAP), led by the U.S. Soybean Export Council, to provide a standardized, quantifiable approach that is audited by third parties and includes international certification. The protocol details the regulations, processes and management practices required to ensure sustainable soybean production”.[iii] Cargill continues to work with farmers, customers, industry partners and other stakeholders to drive continuous improvement and further advance sustainability across their soy supply chain.
Industrial manufacturers are growing more concerned about the sustainability of the products they produce. The protocol is based on existing aggregated data collected from farmers nationwide who participate in national conservation programs. The information serves as proof U.S. crops are produced under a system of sustainability that includes everything from water conservation to energy use.
Akzo Nobel, initiated a new approach to sustainability that they have termed “People. Planet. Paint.” In the “Planet” element of this approach there have articulated specific and measurable targets. For 2030 these include: a 30% reduction in energy use, 100% renewable electricity, 100% water reuse at the company’s most water intensive sites, and zero non-reusable waste. AkzoNobel’s Director of Sustainability Rinske van Heiningen added, “The ambitions we’ve set are realistic and deliverable and will enable us to continue making an important contribution to addressing the sustainability challenges faced by our company, customers and broader society. As a global company, we’re also actively contributing to achieving the United Nations Sustainable Development Goals.”[iv]
AkzoNobel and Cargill are given as examples, but many other companies are in various stages of sustainability and evaluation of a circular economy. PPG, Dow Chemical, BASF, Goodyear and many others are following this path internally. Companies such as IKEA are forcing all of their upstream suppliers to reevaluate the supply chain. For example, foam manufacturers are no longer just manufacturing soy polyurethane for slab stock, such as mattresses but are required to evaluate the source of their feedstock chemicals such as polyols, which can be made from soy. Figure 4 is a good representation of the types of activities that are required to fully address sustainability. Goodyear is a great example of how its commercialization partnership with the USB has not only paid off in developing new, high-performing passenger tires, but it’s now paying dividends in reaching their sustainability goals that is guiding the business.
As this is written, the world is in an upheaval due to the coronavirus pandemic. There is never a better time to make a change than when there is uncertainty and unrest. Even if this were not the case, enough companies have already made it a priority to be sustainable to make this the right time. Nearly all of the sustainability efforts have occurred within the last 24 to 30 months. Biodiesel, soy meal adhesives, tires, oilfield chemicals, and soy oil adhesives in pressure sensitive applications are all examples of how companies have begun to realize the importance of using a renewable and sustainable resource. As well as its impact on the bottom line.
“Driving Systems Change in Turbulent Times – the feature of sustainability 2019”[vii] and “Future of Supply Chains 2025”[viii] are just two of many articles written about sustainability, circular economy and the metrics surrounding it all. We intend to use these and others as best practice.
The 2030 Agenda for Sustainable Development, adopted by world leaders at the United Nations in September 2015, sets out an ambitious plan of action for people, planet and prosperity, with the overarching objective of leaving no one behind. At its core are 17 Sustainable Development Goals (SDGs), underpinned by 169 targets.
Part of the OECD Action Plan on SDGs, the OECD report “Measuring Distance to the SDG Targets” was developed in order to assist member countries with their national implementation of the 2030 Agenda for Sustainable Development. It provides a high-level overview of strengths and weaknesses in performance across the SDGs and the 5Ps, helping countries navigate the SDGs’ complexity and identify priorities within the broad 2030 Agenda.
A pilot version of the report was presented by the OECD in the margins of the UN High-Level Political Forum on the SDGs in New York in July 2016. The second edition of the report was published in June 2017, with a refined methodology and expanded indicator and country coverage. The third edition, “Measuring Distance to the SDG Targets 2019: An Assessment of Where OECD Countries Stand”, published in May 2019, includes expanded country and target coverage. It also includes novel analyses on measuring trends and measuring the transboundary aspects of the 2030 Agenda.
The report is based on the IAEG Global Indicator List and using data from the UN SDG Database and OECD Databases, its unique methodology evaluates the distance countries need to travel to meet each target. The full metadata for the report is available here: Measuring Distance to the SDG Targets: detailed metadata (PDF).
Another very recent metric is Environmental, Social, and Governance (ESG). James Chen, February 25, 2020. Similar to what happened with the “green” movement sustainability and tools associated with sustainability have been developed parallel to the 17 tenants of United Nations guide. Environmental, social and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. Environmental criteria consider how a company performs as a steward of nature. Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. Governance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights.[xi] [xii]
The U.S. Sustainability Assurance Protocol describes the regulations, processes and management practices that ensure sustainable soybean production. This Sustainability Protocol is one part of the overall U.S. soybean producer sustainability program which includes a national measurement system of the positive environmental outcomes by producers.
This concept is targeted at companies that are interested in the circular economy or other sustainability measures, such as DSM, PPG, Dow Chemical, BASF, etc. who are practicing sustainability, or other companies who are either contemplating it or are in the process of implementing sustainability strategies. This will leverage and enhance a proven model of success that has been used to develop the established markets and commercial successes today for polyurethane foam, paints and coatings, adhesives, rubber, etc., with such companies as Ford, Sherwin-Williams, Rust-Oleum, Columbia Forest Products and Goodyear.
There are many well-written, well documented pieces of literature on sustainability from various companies. Two of many, besides the ones written within, are Solvay’s “Sustainability is a way of life at Solvay” which highlights many parts of the value chain.[xiii]
Dow Chemical keeps their sustainability page relatively simple. Read them here.[xiv]
There are many resources for sustainability. Things change constantly and rapidly, and vary quite a bit as has been outlined throughout.
Resources
[i] Sjaak Griffioen—Director of Innovation Strategy & Sustainability, DSM
[ii] “Why should we design products for sustainability?” Miroslavo August 14, 2019
[iii] Cargill Homepage. Sustainable Soy in Europe and North America
[vi] Sustainability in coatings, March 13, 2020. PCI Magazine
[v] researchgate.net
[vi] Maricopa.edu
[vii] Forum for the Future 2019
[viii] https://www.bsr.org/our-insights/report-view/the-supply-chain-leadership-ladder
[ix] OECD
[x] sustainabilityprofessionals.org
[xi] https://www.investopedia.com/terms/e/environmental-social-and-governance-esg-criteria.asp
[xii] https://www.fool.com/investing/what-is-esg-investing.aspx, Alyce Lomax February 20, 2020; What is ESG Investing?
[xiii] https://www.solvay.com/en/solutions-market/coatings/our-solutions-portfolio/sustainability-coatings
[xiv] https://corporate.dow.com/en-us/science-and-sustainability/2025-goals.html
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